BH7631 Performance Management Program for Employee Motivation: Hilton Astana Hotel Assessment Answer
Effectiveness of performance management program towards enhancement of employee motivation and performance, A case study of Hilton Astana Hotel, Kazakhstan
The selected topic will emphasize on evaluating the effectiveness of performance management in enhancing employee motivation and performance. The selected organisation for the task is Hilton hotel Astana which is located at Kazakhstan. The primary business issue of the company is related to poor performance of employees which is affecting organisational productivity. The employees are not comfortable with the work design, culture and management, which is hindering the organisational progress. While addressing the topic, the researcher has collected secondary information from relevant journals and articles in the literature review section. Application of models and theories enhanced the credibility of the study. The researcher has selected the interpretivism philosophy, deductive approach and exploratory case study design in the study. The semi-structured interviews have been conducted with three managers of the hotel with the help of purposive sampling technique. The finding and analysis section interpreted the interview response in the transcript from along with analysis. The discussion section assisted in linking the findings with the literature review sections and the research questions. Lastly, the researcher summarized the findings in the conclusion section and gave evidence based recommendations, followed by a personal statement.
Performance management refers to the process of setting out the outputs and activities for effectively accomplishing the organizational aspects. This study provides an inclusive evaluation of performance management concerning the case scenario of Hilton Astana which is a 'state-of-the-art' hotel based in Nursultan Kazakstan. Performance management is the key responsibility of the managers and the human resource of a company. Performance management involves the allocation of tasks and judging the outcome. The tasks are generally aligned with the overall objective of the organization. However, several constraints hinder the seamless management of performance, thus hindering the motivational aspect of employees. Hilton Astana has conducted performance management programs but these programs are associated with challenges. In most cases, employees do not feel comfortable with either the job design or the working hours. Employees are inexperienced and lack skills and knowledge. Some employees fail to adapt to the workplace culture of the hotel, which is affecting the organisational productivity as they are unable to address consumer interest with effective performance. The outcome is mainly due to the lack of motivation at work as the performance management of the company is not engaging. In the hospitality sector, there is immense competition and service quality decides the fate of the company. However, the employees are lacking skillsets to meet the consumer demands, which can be improved through effective application of performance management.
1.1 Research Aims
The study aims to evaluate the performance management programs conducted by Hilton Astana for enhancing employee performance and motivation to assess its effectiveness.
1.2 Research Questions
The research questions are as follows:
- What are the factors influencing the performance management system in an organisation?
- What is the influence of performance management in enhancing employee performance and motivation?
- What are the challenges experienced by management while motivating employees and enhancing the performance level of employees?
- What are the suitable recommendations that can be proposed for motivating and enhancing the performance of the employees in the Hilton Astana Hotel, Kazakhstan?
1.3: Research Objectives
The objectives of the research are as follows:
- To determine the factors influencing the performance management system in Hilton Astana hotel, Kazakhstan
- To determine the influence of performance management system in enhancing employee motivation and performance?
- To determine the challenges experienced by management while motivating and enhancing the performance level of the employees
- To propose suitable recommendations that can be proposed for motivating and enhancing employee performance in Hilton, Astana Hotel, Kazakhstan?
2.0 Literature review
The second chapter will highlight the views and opinions studied and presented by the other scholars in the same field. It will guide the researcher to find validity and support for their findings and further analysis of the role and effectiveness of performance management on employee performance.
2.3 Influence of Performance Management System on Employees’ motivation and performance
Ganta (2014) have noticed that the performance management system and employee motivation share a positive correlation between them, which further impacts the performance of the workforce. It plays a crucial part in enhancing job satisfaction, organizational commitment and employee motivation. Performance appraisal provides timely feedback to the individuals (. Negative responses tend to offer the opportunity to the person to improve, and on the other hand, positive feedback encourages the staff to continue and develop their productivity further. The studies conducted by Behery, Jabeen and Parakandi (2014), demonstrated that the personnel showed high productivity at work when the individuals are happy with their performance appraisals.
Performance is part of human resource management that influence labour turnover. Albrecht et al. (2015) illustrated through the studies that when the personnel are happy with their performance assessment and the feedback gives the scope of improvement, and it leads to greater job security, which in turn reduces the attrition rate. Nonetheless, Lăzăroiu (2015) argued that the performance management system has an adverse effect on the staff when the persons are not satisfied with their appraisals or if bias results have occurred. Biasness in the performance management system leads to discontent, grudges, lowering of productivity and in severe cases, lead to job quitting. Therefore, the firms should implement fair and unbiased performance management system to enhance their work culture and employee morale and performance.
2.4 Factors affecting Performance Management System
According to the opinion of Behery, Jabeen and Parakandi (2014), it is revealed that numerous determinants affect the performance management system, which has been elucidated below:
2.4.1 Organisational factors:
Organisational aspects that affect the effectiveness of the performance management system include the culture of the firm, job design, and workload. As per the views of Sharma, Sharma and Agarwal (2016), it is seen that the companies are increasingly concerned about the performance management system as it significantly impacts the productivity of the firm. Positive culture of the working environment leads to promote team bonding and enhance their quality of work. Further, Ganta (2014) corroborated that the design of the job and workload determines employee engagement, which increases the performance of the employees.
Figure 2: Factors affecting Performance Management System
(Source: author’s creation)
2.4.2. Individual factors:
Khan (2012) highlighted that individual aspects comprise of skills, knowledge, health and personal problems that impact the performance of the workers. The author added that skill and expertise level determine the greater quality of work, which is further rewarded by the performance management system, thereby motivating them. However, Lăzăroiu (2015), argued that health and personal issues tend to deteriorate the quality of work, henceforth lowering of performance and consequently their motivation.
2.4.3 Managerial factors:
Albrecht et al. (2015) stated that communication and management style, Work-life balance and employee policies tend to affect the efficiency of the performance management system. Transparent communication and participative management style enhance employee’s morale and subsequently increases their motivation as the relationship between the worker and manager are built on mutual trust. Besides, the scholar added that fair employee policies that promote work-life balance tend to increase employee engagement, as a result improving the effectiveness of the performance management system (Hosseini et al. 2019).
2.4.4 Role of managers in performance management
The managers play a vital role in the entire procedure of performance management by setting certain trends and further serve as the role model for the employees. They take active participation in designing policies and make the employees attain the core values of the organisation (Khan, 2012). He also takes the initiative of communicating the mission and vision statement of the company to the respective employees. Managers also ensure that employees are working up to their potential for attaining business goals. He also motivates the employees and establish shared belief amongst them for making continual improvement in performance (Dobre, 2013).
2.5 Relevant theories
2.5.1 The goal-setting theory
According to the views of Locke and Latham (2012), Goal Setting theory stated that the individuals when set a difficult goal to achieve, their performance tends to get better, on the contrary, if the aim is simpler to attain, the quality of the work decreases. However, Rolstadås (2012) argued that if the goals of the employee and the organisation are conflicting, then it has adverse effects over the performance. The various aspects of the theory include challenge, clarity at work, the commitment of the individual, and the complexity of the task (Worley and Pillans, 2019). Therefore, it can be implied from the facts mentioned above that the non-conflicting and difficult goals lead to better performance of the workers than easier targets.
2.5.2 Expectancy theory
As per Parijat and Bagga (2014), expectancy theory was formulated by Victor Vroom, and it highlighted that performance of the workers and their level of motivation is highly dependent on instrumentality, valence and expectancy. Shahzadi et al., (2014) validated the opinion and stated that expectancy outlines the ability to do the task satisfactorily, whereas instrumentality identifies the rewards associated with expected performance and valence further concentrates on the value of those positive rewards. The scholar elucidated that the extent of motivation directly depends on these elements; thereby making it essential for the firms to incorporate in their management system (Pulakos, Mueller-Hanson and Arad, 2019).
2.6 Relevant model
2.6.1 The ABC model of behaviour change
Leroy, Palanski and Simons (2012) advocated that performance management is based on the ABC model, which includes three primary elements, viz., “Antecedents, Behaviour, and Consequences”. As per the model, the behaviour of the employee can be modified by the organisation by two determinants, namely ex-ante and ex-post. The scholar added that when the management or the firm desire to change the behaviour of the staff before certain work, it utilises Antecedents. In contrast, when it tries to modify certain behaviour after an event, it takes the help of Consequences. Dobre (2013), validated the opinion and stated that the interaction between these three determinants allow the companies to assess the performance of the staff and manage it and further plan remedial strategies.
2.7 Effectiveness of performance management system towards employee engagement
As per the opinion of Ojokuku (2013), employee engagement is the crucial determinant of their performance. It is described as the level of commitment and passion at work that the workers feel towards their job. However, Nzuve and Njeru (2013) argued that it differs from staff satisfaction because it deals with the level of contentment with work, on the contrary, engagement outlines how involved the person is in their task. Mansor et al., (2012) further suggested that the performance management process will motivate the individuals through various rewards that will further foster staff engagement and lead to greater performance. Appreciation and glorification at the workplace tend to boost the morale of the persons and satisfy their self-esteem, which in turn enhances passion for work and results in better performance (Tweedie et al. 2019).
2.8 Application of performance appraisal method for enhancing employee motivation
As per Turgut and Mert (2014), the checklist method registers a few statements that define various traits of the employee, where the surveyor has to select either yes or no against the given fact. In Graphic rating scale method, the surveyor has to rate the worker and rank them on a numbered scale against the pre-defined statements about the individual that identify their performance. In ranking appraisal approach, the workers are compared with their peers for identifying and understanding their strengths or weakness and further evaluated from highest to lowest. However, the method does not indicate who is better. Karkoulian, Assaker and Hallak (2016) opined that 360-degree feedback is the most comprehensive process of understanding and appraising an employee as the views are taken from peers, superiors, subordinates and even the clients, thereby offering extensive report about the performance of the staff.
2.9 Challenges of implementing an effective performance management system
Though the performance management system is healthy for the organisation and helps the firm and its employee to grow; however, Ganta (2014) identified that the system encounters numerous challenges while implementing it effectively. The system has to be correctly integrated with organizational culture, human resource rules, strategic plans, and structure of the company. Furthermore, Behery, Jabeen and Parakandi (2014) highlighted that absence of integration, inappropriate design and lack of guidance from the leaders are the other challenges. Thus, the organisation needs to adapt to these changes for successfully implementing performance management in the organisation.
The performance management system has a vital role in motivating the workers and enhancing their overall productivity at work. Various scholars have corroborated the same through their studies as evident in the sections above. Different factors such as organizational, individual and managerial aspects affect performance management at work. Furthermore, certain elements such as job security, the scope of improvement through honest and timely feedback lead to higher morale. Nevertheless, unfair assessment can lead to the lowering of the performance. Goal-setting theory underlined that establishing difficult aim leads to better the performance and expectancy theory revealed that instrumentality, valence and expectancy are the primary constructs of enhanced performance. ABC model highlighted the role of antecedents and consequences of shaping the behaviour of the employee. It was further seen that effective implementation encounters several challenges, which should be appropriately handled for greater organizational efficiency.
Figure 1: Conceptual framework: performance management program towards enhancement of employee motivation and performance
(Source: Author’s creation)
The conceptual framework highlights the signpost for the literature review section. It indicates the theories and models used for explaining the relevance and importance of performance management program towards enhancement of employee motivation and performance. Further, it shows the factors affecting the performance management program and explains the role of it in employee motivation. Various methods of performance appraisals are discussed that enhance employee motivation. Besides, the challenges faced for its effective implementation are also discussed.
3.0 Research Methodology
This segment of the study provides a comprehensive idea to the researcher regarding the disparate paradigm of exploratory research. It also provides an inclusive knowledge about the techniques or methodologies that the researcher has implemented for conducting the current study. The methods of the research methodology are applied in the different areas of the survey that includes data collection, its interpretation, evaluation, and assembling the first-hand data. Research methodology demonstrates the tools that are used by the researcher for the collection of first-hand data that are both valid and authentic. The data gathered are relevant to the subject of the study.
3.1 Research Philosophy
The researcher has used interpretivism philosophy for the implementation of the current research study. This approach refers to the act of interpreting elements that are incorporated into a study. The researcher has used this approach because interpretivism philosophy as it provides access to each of the aspects of reality by giving a different perception of a matter (Ngozwana, 2018). An interpretive observes the elements by not considering the influence of the external forces and therefore not manipulated. The researcher has discarded positivism approach as social factors exert a strong influence on the items or members. Another reason for choosing interpretivism approach is that it perfectly aligns with qualitative analysis while positivism philosophy is again not considered for it is an ideal choice for quantitative analysis.
3.2 Research Approach
The deductive approach has been applied as a research method for the implementation of the current study. Deductive approach refers to the application of reasoning for reaching a logical conclusion. The reason for choosing a deductive approach is that it is based on an existing theory where the researcher assumes the conclusion based on the current hypothesis (Fletcher, 2017). A deductive approach is chosen basically for it is not a time-consuming technique and the aspects are simply explained rather than elicited from confusing examples. The researcher has not considered inductive approach for this study for it consumes a lot of time and demand expert skills . The inductive approach is also discarded for it is based on generalized principles.
3.3 Descriptive Research Design
The researcher has chosen the exploratory research design which refers to the act of interpreting or exploring a problem which has not been studied before. The researcher has chosen this method for exploring the challenges and benefits of performance management programs at Hilton Astana. This aspect of the hotel has not been addressed before and the researcher intends to evaluate the effectiveness of such programs (Mohajan, 2018). This method is used for it is more flexible in nature and lays a groundwork that could assist future research works. This research method is also potentially time-saving. The researcher has not regarded the explanatory research method because the researcher does not intend to explain existing observations and rather is focused on making new observations.
3.4 Data Collection methods
For the method of data collection, the researcher has used a qualitative method for making specific observations of the sample. Qualitative method refers to the inferences that are drawn from first-hand sources. The qualitative research method is used by the researcher as the researcher intended to make observations from a semi-structured interview with managers (Cuervo‐Cazurra et al., 2017). The researcher has used this method for it enables greater understanding and interpretation of the systems and processes within an organization. The researcher has not used a quantitative approach of data collection for it depends on the accuracy and scope of measurement scale. Therefore, the results obtained through quantitative analysis might not be precise. The qualitative research method is the potential of delivering more accurate results.
3.5 Sample Size and techniques-
Sample size is defined as the respondent's number who preferred to take part in the research for generating data. The researcher selected 3 managers for interview purposes. Frontline manager, floor manager and operational are chosen for the interview process. The researcher has used purposive sampling technique for choosing the specific sample size required for conducting the study (Ørngreen and Levinsen, 2017). The researcher has chosen this sampling technique because it comprised of multiple phases. With the help of purposive sampling technique, real-time data can be collected from the managers (Mora et al.,2019). Semi-structured interviews is used by the researcher for receiving the responses from the manager. The questions are based on the performance management effectiveness in Hilton Astana. This interview format permits the respondents and the researcher for enjoying comfort and flexibility at the time of interview.
3.6 Data analysis
The researcher has aimed to use the observation technique for the collected primary data. The researcher has selected this technique because it is the simplest one and no technical knowledge is required for conducting the interview process. This is one of the methods of data collection in which the researcher accumulate knowledge and information through the observation of certain phenomena, as it occurs. The researcher aims to focus their observation on the behaviour of human subjects (Bourque and Bourdon, 2017). In this research, the researcher would make observations of the frontline manager, floor manager and operational manager. Therefore, the researcher needs to focus on human interactions, which are related to the phenomenon. The phenomena are directly observed by the researcher within the natural setting. Observation research is believed to be a qualitative of the non-numeric technique of research. The ongoing behaviour of the participants is analyzed by the researcher in this method of data analysis.
3.7 Gantt Chart
[Referred to as Appendix 1]
3.8 Ethical considerations
The interview conducted is over the telephone. Hence, the confidentiality of the manager responses is maintained. Managers are not forced to take part in the interview process. Respondents voluntarily participated in the interview process. The interview is conducted after the manager has agreed with the consent form. Responses received from the manager are used for academic purposes only. Tampering or manipulation of the information for getting favourable outcome is strictly prohibited (Ngozwana, 2018). Researcher's ethical outlook comprised of consent form circulation to the managers. It abides the Data Protection Act and also assures the confidentiality of the respondent's identity.
3.9 Research Limitations
The researcher was unable to conduct the study from a wider perspective due to less funding and budget. Furthermore, application of mixed methods would have interpreted triangulation of data. The researcher was unable to access certain journals and books as they are paid version.
4.0 Findings and Analysis
This section of the report will emphasize on the conduction of semi-structured interviews with three managers of Hilton Astana Hotel in Kazakhstan. The managers selected for the particular report are Frontline, operational and floor manager respectively. For maintaining the anonymity of the respondent, the floor managers will be regarded as Respondent 1, front line manager as respondent 2 and operational manager as respondent 3 while conducting the study.
4.1 Interview Question findings and analysis
Q1: Why do you feel there is an essentiality to implement a Performance Management system in your organisation?
While addressing the question, Respondent A stated: "the employees are unable to adapt themselves to organization process and culture, which is affecting their performance and motivation in the workplace”. Since employees are not performing as per expectation, it is resulting in poor service quality, thus affecting organizational productivity in the competitive market. Furthermore, it can be stated that owing to poor performance, they are on low morale which is affecting their motivational level at the workplace. Likewise, Respondent B said, “employees are unhappy with the work design and working hours, thus affecting employee performance and motivation”. Hotel Hilton Astana has a tedious working environment owing to the nature of the hospitality sector. Since the employees are already underperforming, stretched working hours and inability to equip with the work design is affecting their contribution in the organizational context. Owing to poor performance, consumer complaints are rising, thus affecting the brand identity of the company. In this context, it could be stated that there is an essentiality of implementing a successful performance management system for improving the abilities of the overall workforce effectively. While addressing the above-mentioned question, Respondent C stated: “there is a lack of understanding amongst the employees itself and management, which is lacking a coordinative approach towards work". Inclusion of an effective performance management system will allow the managers to track the progressing of employees through a shared tool of tracking. This would indeed allow the managers and employees to work collaboratively for attaining company objectives, which would indeed resolve the lack of information sharing issue within the organizational context.
Q2: What are the factors that should be taken into consideration for successful implementation of performance management system in your organisation?
While referring to the above-stated question, Respondent A said that “I think that a successful organisation always lies on an amalgamation of performance analysis and key performance indicators”. The initiative often acts as a benchmarking tactic for setting performance standards for the employees. The efforts of the employees will be judged against the key performance indicators and the results will be analyzed through performance management tools. If the parameters are not set by the management, then it would result in an ineffective application of the performance management system. In this context respondent, B added: “setting of short term and long-term goals with clear objectives is essential for implementing a performance management system successfully within the organizational context”. Once the goals are clear, then the employees can be framed accordingly for the fulfilment of the objective. In this context, SMART goals shall be set by the organisation for enhancing employee motivation and performance in the competitive market. Respondent C added, “employee engagement should be at the heart of establishing a successful performance management program at the workplace”. This is because an engaged employee is motivated and show enthusiasm towards the fulfilment of organizational interest. In contrast, when employees lack engagement, it has a negative impact on their performance and due to less motivation, the ability of achieving targets is affected automatically.
Q3: How does an effective performance management program contribute towards enhancement of employee motivation and performance?
While referring to the interview question, Respondent A quoted “effective performance management system provides constructive criticism to the employees, which draw employee interest to work on his skillsets”. When management portrays the desire to assist employees, employees automatically feel motivated to live up to the Organisational expectations. Likewise, Respondent B added “effective performance management program assists in converting weakness into a strength”. Since performance management system assists in reviewing employee’s performance based on certain parameters, it highlights the areas of improvement from the perspective of the employee. In this context, training is provided to the employees for managing his weaknesses effectively. Respondent C stated that “performance management system shares prominent feedbacks and allows employees to incorporate changes with a positive mindset”. In this context, it could be stated that if the management shares feedback with the employees they are more willing to rectify their mistakes. If feedback is not provided and employees are criticized further, then it will have a negative influence on employee motivation.
Q4: What is your opinion about the connectivity of the organizational culture for the successful establishment of Performance management?
As stated by Respondent A “I believe a participative organizational culture is essential for the successful establishment of performance management”. This is because organizational culture and performance management are interdependent towards each other and therefore, managers should take active participation in determining the influence of the organizational culture for highest yields from the performance management system. It is noticed that a weak organizational culture demotivates an employee for improving his skills sets as per the parameters of performance management practices. In this context Respondent, B quoted “I feel if the organizational culture is toxic, then the performance management strategies will not be able to yield expected results”. In this context, it can be stated that when employees are not motivated, they develop a laid-back attitude and show resistance towards performance management practices. Furthermore, it creates an element of confliction amongst the employees and managers resulting in a difference of opinion. In this context, respondent C said: "An effective organization emphasizes on improving the overall performance of the organisation and considers performance management practice as a key constituent for motivating employees”. Therefore, it can be said that a strong working culture supports team coordination, employee participation in decision making and application of creative thoughts and innovative ideas, which is essential for improving employee performance. Employees belonging to a participative working culture are open to constructive criticism received from management, based on performance management parameters and improvise accordingly for addressing organizational objectives.
Q5: What is the gap between employees and management affecting the motivation and performance level of the employees in the organisation?
In regards to the above-mentioned question, Respondent A stated: “In the context of the hotel, there is a strong disparity about what the leaders are expecting their employees should know and what the leaders indeed believe the employees should be knowing”. While evaluating, it can be stated that when employees do not understand a specific thing, they are confused whom to address and management often overlooks such issues until it reflects on employee performance. Therefore, gap communication and training gaps are automatically fallen on the shoulders of management. Therefore, there must be a proper flow of information across all forms of management. In this scenario respondent, C added: "absence of integration also hinders the successful application of performance management system in the organizational context". The system of performance management must be integrated within the HRM and strategic aspects of the company so that the employees are also aware of the managerial expectations. Furthermore, such changes shall be incorporated within the organizational culture as well, which is missing in the context of Hotel Hilton Astana. While addressing the query respondent B stated: “lack of communication across all forms of management is one of the major issues result in poor employee productivity and motivation”. Communication is an essential aspect that drives employee performance considering the fact of what is exactly expected from the employees. Proper communication ensures that the issues faced by the employees are addressed to the management and likewise, the management takes needful initiatives for improving the overall performance of employees and motivate them accordingly.
Q6: What method of performance management would you recommend and how frequently feedback can be provided?
While referring to the question respondent A stated: “feedback shall be provided to the employees as frequently as possible and methods of performance management shall be selected depending on the receptiveness of the employees”. If the performance management methods are complicated by nature which the employees fail to understand, then the evaluation process could become a tedious job. Feedbacks will ensure whether the management has been successful in addressing the issues faced by employees and to what extent does the employees reciprocate to the proposed changes. Respondent B added, “graphic rating scale, checklist scale and 360-degree feedback are some of the most effective performance management methods for motivating and enhancing employee performance”. While referring to the feedback, it can be stated that the graphic rating scale will allow the managers to rate various aspects of work under a rating scale. Depending on periodic reviewing, the managers can understand the areas of improvement from the employee’s perspectives. Likewise, checklists assist in determining employee traits depending on yes or no parameters. 360-degree feedback assists in conducting an in-depth analysis of the factors affecting employee motivation and performance by taking into consideration how employees perceive themselves and how others perceive the employees. The particular method is easy to implement and results Respondent C added: “continuous feedback will help the employees in rectifying their mistakes and perform better in the organizational context”. Feed takes active participation in enhancing the motivation level of employees as they tend to feel more engaged in the organizational context. Furthermore, it also serves as a tool for professional and career development, thus proving to be helpful for the employees in the long run.
While analyzing the qualitative information, it can be assumed that effective application of performance management system takes active participation in motivating and enhancing employee performance within the organizational context. It has already been identified that the employees of Hilton Astana hotel lack motivation, which is resulting in poor service delivery. Likewise, the organizational productivity is getting hampered, and therefore, there is an essentiality of implementing effective performance management practices at the workplace. While addressing the research question factors influencing e performance management system in the organisation, it is stated in the literature review section that PMS is triggering by organizational culture, job designing and work load provided to the employees. These days organizations are concerned about performance management as it is relatable to organizational productivity and an effective working culture ensures team bonding with enhanced quality of work (Sharma, Sharma and Agarwal, 2016). As far the interview responses are concerned, it was stated by the respondents that participative working culture ensures successful implementation of performance management at the workplace as employees as it allows constructive criticism where employees are entitled to getting both positive and negative reviews so that they can improve their skillsets depending on the performance parameters. The literature review section states that certain individual factors such as personal or health issues might affect the performance of the employees (Ganta, 2014). Likewise, an employee can be weak in a particular, which may be the strength of the other employee. The interview sessions also stated that performance management strategies assist an employee to identify areas of improvement, depending on which the managers can work upon the changes required for improving the performance of the employees. The literature review statement also stated that managerial factors need to be considered while implementing performance management program in an organisation successfully and in this context, participative management and communication plays a pivotal role in motivating the employees of the organisation (Khan, 2012). In this context, the respondents also stated that there should be proper flow of information across all forms of management so that the managers know the exact issues that is being faced by the employees and measurements can be taken accordingly for handling the situation effectively. While drawing implications from the finding and analysis section, it can be stated that managers should always prioritize listening to the issues faced by the employees and provide constructive feedback depending on the reviewing parameters set for the employees. If employees feel comfortable to share their concern with the management, then it yields a positive impact on their motivational level and overall performance. While addressing the role of performance management system in enhancing motivation and performance level of the employees, it can be stated that there is a positive correlation between performance management and employee motivation as it influences job satisfaction and commitment towards work (Albrecht et al. 2015). In this context, the responses of the managers were also similar stating that constructive criticism and feedbacks generated from the reviewing tools of the performance management system will allow the managers to guide the employees in the correct path. Furthermore, performance management tools monitor employee performance based on ratings and scale, so the management is in a position to judge how to deal with different types of employees. The literature review section also stated that the performance indicators set by the management should treat every employee fairly, as biasness could lead towards a feeling of discontent amongst the employees (Shahzadi et al., 2014). Therefore, it could be stated that the managers should be keen in improvising effective performance management techniques and strategies for assisting the employees. Furthermore, performance management should fit in with the organizational objectives and goals so that the employees are aware of the responsibilities they need to carry out in the organizational context. The literature review section states that as per goal expectancy theory, if the employee and company goals are contrasting with each other, then it has an adverse effect on the employee performance (Rolstadas, 2012). In this context, it could be stated that the management should set distinct goals and objectives which also aligns with the employee interest. A motivated employee tends to improve the performance consistently and tends to co-operate with management decisions. While addressing the research questions concerning the challenges faced while implementing performance management, the literature review section highlighted the aspect of inappropriate designing, absence of integration and less assistance from the leaders are the concerns associated with the successful implementation of performance management (Locke and Latham, 2012). In this context, the interview respondents further stated that on numerous occasions employees are not sure of what the management is expecting from them and at times when the expectation is not met, it results into a situational dilemma. Therefore, it is suggested that while implement performance management program in the hotel, the management should implement it within the organizational culture and communicate the requirements across all forms of management. As per expectancy theory mention in the literature review section, the ability to conduct tasks satisfactorily, getting rewards and valuing the rewards is associated with prominent employee performance. In this context, instead of only providing feedbacks and rating employee contribution, the management should also take active participation in motivating the employees so that they always work with a positive mindset (Ojokuku, 2013). In this context, it could be stated that the management shall have a cordial approach towards employees and recognize their talent through performance appraisal. Lastly, while recommending solutions it was identified that 360-degree feedback was identified as one of the most comprehensive ways of measuring employee performance in the organization. Furthermore, grading and checklist scale also assists in reviewing employee performance based on certain parameters. Successful application of such tools not only assists employees in converting their weakness into strength but also results in improvement of overall skillsets for the fulfilment of business objectives. On the contrary, it could be stated that Hotel Astana can revive its brand identity in the competitive market if they can implement effective performance management strategies within the organizational culture.
As per the limitations of the study are concerned, it could be stated that the researcher could not conduct the study on a wider scale due to lack of budget and stipulated time duration. If the researcher had more time and no budget constraints, he could have evaluated the research variables from various angles and perspectives. Furthermore, it could be stated that the application of mixed methods could have added rigidity to the selected topic, however, the researcher only applied qualitative analysis. Application of the quantitative analysis would have allowed the researcher to collect responses from a large number of respondents so that it is not subjected to biases. Furthermore, the use of statistical tools for analyzing data would have justified the credibility aspect of the study. Furthermore, the application of mixed methods assists in neutralizing the negative impacts of quantitative and qualitative analysis respectively.
While concluding, it could be stated that an effective performance management system plays a pivotal role in motivating and enhancing the performance of the employees. In the context of Hotel Astana, it could be estimated the employees have not been able to adapt themselves with the organizational culture and work design. Owing to poor motivating aspects, their performance is getting hampered automatically, which is indeed hampering the organizational productivity in the competitive market. The literature review section assisted in collecting secondary information regarding the effectiveness of performance management from credible sources. The researcher has conducted a qualitative analysis in the selected topic as it helps in acquiring information from limited as well as knowledgeable personalities. In this context, the researcher conducted a semi-structured interview session with the floor manager, frontline manager and operational manager of Hilton Astana Hotel. The researcher used the purposive sampling technique as it helped the researcher in collecting information in selecting respondents as per choice. The qualitative interview sessions primarily listed the essentiality of implementing performance management program in the organisation. It was identified that lack of integration, poor working hours and lack of adjustment between the employees and management are hindering the overall performance of the organisation. In this context, there is an essentiality of setting clear goals and objectives so that the employees are in sync with the management requirements. If the employees are unaware of the organizational requirements, they will fail to attain the business objectives which is the present issue in the organizational context. The study also highlighted the managerial, individual and organizational factors that need to be taken into consideration for implementing the performance management program successfully in the organisation. These factors are essential in identifying the key areas that shall be taken into account while implementing performance management in an organizational context. It is stated that performance management, motivation and employee performance are interrelated to each other. Therefore, participative organizational culture allows employees to freely share their concern to management., depending on which constructive criticism can be provided to the employees as per the reviews of performance management tools. Constructive criticism assists in highlighting the weakness of an employee to avoid such occurrences shortly. If the organizational culture is not supportive by nature, employees will automatically lose interest and will be resistant towards the performance management program. Employees should be allowed to raise their concerns so that the managers can assist them as per their needs. Furthermore, it was identified in the study that there is a disparity between the expectation level of the management and employees. Therefore, employees are not quite sure about what the management is exactly expecting of them and likewise, the management over expects from the employees on numerous occasions. Also, there is lack of proper communication across all forms of management and therefore, the exact issue is bypassed on a certain context. Lack of integration and non-supportive approach of the leaders is hindering the organizational progress in the competitive market. Furthermore, it can be stated that if the communication is not clear between management and the employees, it will result in poor employee performance, which is hindering the overall productivity of the organisation in the competitive market. The main issues that could hinder the successful implementation of performance management are lack of cultural integration and less managerial support. However, effective application of performance management tools such as 360-degree feedback, grading scale and checklist scale will assist management in shortlisting employees that need improvement. Depending on the reviewing scale, the management can guide the employees for improving on their areas of weakness. The reviews of the performance management program shall be discussed open forum, where suggestions will be given for improving the overall performance. On the contrary, the researcher successfully was able to justify the effectiveness of performance management for motivating and boost employee performance. Enhancement of the employee performance will allow the company to regain its lost status in the competitive market. The researcher also highlighted certain limitations highlighted with the study due to lack of budget and time constraints. On an overall note, it could be stated that performance management can become successful in an organizational context if there is proper integration of management, identification of goals within its cultural entity. Upon identification of the issues, suitable recommendations have been proposed for conducting the study successfully.
Peer Review: The management of the organisation can consider conducting peer review. The senior management can engage with the staff personally to collect the data about the behaviour and their approach to perform the specific tasks. This would enable the management to determine the level of commitment put in by each employee at the workplace. Moreover, the organisation would be able to identify which employee to be given training and which one to be terminated (Mone et al. 2011). By collecting the feedback from the employees, the organisation would be able to adopt potential approach such as making necessary adjustment at the workplace, building training programs, providing new technology to manage work, etc. This would help in encouraging the staff to remain associated with the organisation and make higher contribution in increasing personal and organisational performance (Gruman and Saks, 2011).
Meetings: The consideration of meetings will significantly support the management of the company to understand the situation of the employees. In that context, conducting meetings at open forum will assists in maintaining transparency among staff. It will allow the employees to put forward their points related to workplace environment, job design and other elements which affects the psychology of employees at the workplace (Allen and Rogelberg, 2013). As a result, the management will be able to identify the gaps in managing performance and factors leading to employee dissatisfaction and de-motivation. The organisation can conduct meetings as per the requirement either weekly or monthly.
Communicate company’s goals and performance objectives: For managing and engaging the employees at the workplace to a large extent, the organisation must ensure that they effectively communicate goals and performance objectives of the business with the employees. It will help the staff to clearly understand their job role and responsibilities and the performance level expected from them (Rajhans, 2012). This would further support in making a supportive and cooperative work culture contributing to superior performances.
Effective utilisation of performance management tools for enhancing employee motivation and performance: The organisation can adopt various rating scales like 360-degree feedback, checklist scale and grading scale for managing the performance of staff. By applying these tools, the organisation would be able to determine under-performing employee and top-performing worker (Dobre, 2013). As a result, the management would be able to arrange an effective training session which will help the underperforming staff to sharpen their skills and capabilities. Moreover, the management can help the top-performing employee to deal with a more critical and complex job.
7.2 Implementation Plan
|Activities||1 week||2 weeks||3 weeks||4 weeks||5 weeks |
|Communicate company’s goals and performance objectives|
|Effective utilisation of performance management tools|
7.3 Tracking Benefits
The benefits from the proposed recommendations will be measured by using the growth in the engagement of employees at the workplace. The level of productivity in a week and month will be taken in account for determining the amount of contribution made by each employee. This will support in ascertaining whether the employees are able to adjust to the workplace culture and job design. Also, the change in the skill set of the workers can be identified. On the other hand, employees will be asked to post their queries and experiences on the dashboard of the company. It will help the company to determine whether employees are satisfied and feel motivated with the current performance management program (Gruman and Saks, 2011). Furthermore, leaders of different departments will be given the responsibility to ensure that all staff are committed to attaining proper training and skill development session and their problem are timely addressed. This will support in ensuring employees are effectively managed and trained, thereby, enabling them to make a higher contribution to achieving quality performance.
a. Budget to Realise Implementation Plan
|No of Hours in a day||3 |
|Materials||Computers, chairs, tables, projector and software. |
|Hiring Expert||Cost: $15040|
|Setting IT infrastructure||Cost: $6980|
|Training and Development ||Cost: $5042|
b. Expense Flow Forecast
|Particulars ||Year 1 1 ($)||Year 2 ($)||Year 3 ($)||Year 4 ($)|
|Setting IT infrastructure||6980||6980||9250||11050|
|Training and Development||5042||7050||9800||12350|
c. List of Costing Assumptions
|Cost of Man hours||$200|
|Licence for Technology||$1500|
|Computers on Rent ||$350|
|Workshops per week ||$375|
|On-the-job training ||$255|
d. Contingency Expenses and Rationale
The contingency expenses of 20% may be incurred if there is damage in the IT system or computer systems. Therefore, additional computer systems will be arranged so that delay in conducting meetings, reviews or assessing performance can be avoided. Furthermore, there would be requirement of including another expert for training the staff in case if the existing expert get ill or resigns.
e. Reference to any Unquantified Costs
It would be important for the organisation to consider the situation of organisation stress, individual burn-out, staff turnover, strike from employees, etc. Therefore, the company need to be watchful about these unquantifiable costs in order to implement the strategies effectively. The organisation would require to regularly interact and monitor the behaviour of employees so that above-mentioned situation can be mitigated.
8.0 Personal Learning Statement
While researching the selected topic, I gained experience about the importance of performance management programs in managing employee motivation and performance. While researching the selected topic, I acquired in-depth knowledge about the performance management tools that can be used by organizations for tracking and reviewing employee performance. I gained a wide array of knowledge about the organizational culture and its effectiveness in making the successful establishment of the performance management program. I also got an overview of the contribution of performance management system in resolving deficiencies in employees and assisting them to capitalize on their positive aspects. While conducting the study, I initially faced issues in selecting the appropriate research method. I was confused what which methods to select considering the fact both quantitative and Qualitative methods had respective strength and weakness. However, I was not in a position to select mixed methods either as it is expensive and time consuming. Then I decided that it is better t conduct qualitative analysis as it will assist me in understanding the issues related to performance management in an in-depth manner. I took the assistance of research journals and articles to decide upon the chosen approach and philosophies, and finally decided to conduct semi-structured interviews with the employees. While recommending, I was also struggling initially as there was a wide array of options to choose from. Finally, I selected check list scale, grading scale and 360 feedback as the recommended option as I felt it is the most effective way of reviewing employee performance.